Renowned betting platform Polymarket is facing outrage from financial regulators and the general public for accepting wagers on the Palisades fire currently rife in Los Angeles.
The prediction platform, which rose to popularity during the 2024 US election cycle, is accepting wagers on various “markets” including the number of acres the fire would affect, the cities that might be ravaged, and many more. After displaying its markets on social media, Polymarket was met with intense backlash from many users. One user posted on X:
The Palisades Fire: Effects and the Betting Market
Despite the backlash, the fire, which has claimed two lives, has been a major attraction on the betting platform with people shelling out thousands to wager on the fire. Thousands of properties have also been destroyed. This includes the Corpus Christi Church in Pacific Palisades and the million-dollar homes of celebrities, including well-known actor James Wood.
CFTC Ongoing Investigation
Reports of the fire incident come amid ongoing investigations by the CFTC. The investigation has subpoenaed Coinbase to disclose user data linked to Polymarket. A well-known contributor to the Ethereum network, Eric Conner shared a screenshot of the email containing the subpoena on January 8. According to the contents of the email, the CFTC has demanded that Coinbase fully disclose certain customer data.
There was also an FBI raid of the prediction platform’s CEO Shayne Coplan’s residence, following the 2024 US Presidential elections. The CFTC later announced that the investigation was centered on potential violations of restrictions on US user participation.
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